Finance Fridays: Fair Market Value Equipment Financing

Reading Time: 2 minutes

Why an FMV Lease Could be Your Best Option

Thanks for coming back for our third installment of our Finance Fridays series! Today, discover our fair market value leasing option and how it can benefit your business.

Last week, we showed a high-level overview of our equipment financing program. In that post, we explained our rates and terms, our repayment options, and why you should lease your equipment. We don’t want to repeat ourselves – so check out that post to learn more about equipment financing. We’re just going to jump right in to FMV leases!

Benefits of a Fair Market Value (FMV) Lease

A fair market value lease, or an operating lease, is one that has a residual purchase option at the end of the contract. In order for you to be able to make an educated decision, you need to know why writing this into your contract is beneficial for you and your business.

  1. Lower monthly payments: This enables you to better budget your money and have more financial flexibility over the course of the lease. Fun fact: The fair market value lease option will often give you the lowest payment of any other kind of lease.
  2. Tax benefits: An FMV lease can often be considered an expense that is fully deductible on the balance sheet. This happens because the equipment you finance doesn’t become a long-term asset, debt, or liability. We do, however, suggest talking with your financial advisor before making any final decisions when it comes to tax benefits.
  3. You have options: You have absolutely no obligation to purchase the equipment at the end of the lease if you decide you don’t want it. You can buy it outright at the fair market value (often set by us), you can give the equipment to us when the contract ends, or you can choose to finance it for a longer period of time.

How to Get Started

First, we suggest visiting our previous Finance Fridays post to get a complete look at what equipment financing can do for you. Then, give us a call!

Our experienced team will fully assess your business needs and get a good understanding for how the equipment you finance will benefit your business. We will then provide you with what your options are to help you decide if a fair market value lease is right for you.

When it comes to new equipment, you don’t have time to wait. Start the equipment financing process today so you can start increasing revenue tomorrow. Visit our website or click on the banner below!